Sensex in India Drops 1%; Auto Sales Soar 26%

Devan Biswas
09 Feb, 2011
New York City

Stocks in Mumbai decline for the second day more than 1% and closed down 3% in two days. The inflation worries and slower economic growth has worried foreign and domestic investors. Auto sales in January soared 26% and Maruti Suzuki sales surged 14.7% in the month.

[R]5:00 PM Mumbai – Stocks in Mumbai decline for the second day more than 1% and closed down 3% in two days. The inflation worries and slower economic growth has worried foreign and domestic investors. Auto sales in January soared 26% and Maruti Suzuki sales surged 14.7% in the month.[/R]

The benchmark index Sensex declined for the second day in a row totaling 3% losses as inflation fears drive investors away. Foreign investors have been on the sidelines too on the worries that the economic growth rate may decline below 7%.

The BSE Sensex plunged 1% or 182.93 to close at 17,592.77 The CNX Nifty on the National Stock Exchange declined 59.00 to close at 5,253.55.

Market indexes in China region and India, Indonesia and Singapore and Korea fell more than 1% after China hikes rates for the third time in five months.

Auto sales in January surged 26% from a year ago after sales increased 31% in all of 2010. Fears of higher interest rates and rising prices have auto makers worried and sales growth is expected to slow down to 15% in the current year.

Auto sales increased to 184,332 cars according to the data released by the Society of Indian Automobile Manufacturers today.

Maruti Suzuki January sales increased 14.7% and Tata Motors sales increased 15% and Mahindra & Mahindra sales surged 22%.

Trucks and buses sales in the month rose 12.6% to 60,753 units.

Stock Movers

Everonn Education Limited gained 4% to Rs 502.05 after the educational and training company reported third quarter consolidated net profit rose 56% to Rs 18.95 crore.

Koutons Retail India Limited plunged 4.8% to Rs 28.25 after the textile products maker reported third quarter net loss of Rs 317.10 crore compared to net profit of Rs 15.80 crore from a year ago.

Mahindra & Mahindra Limited surged 4% to Rs 654.20 after the conglomerate reported net profit excluding exceptional items surged 57.4% to Rs 757.80 crore and gross revenue and other income increased 20.9% to Rs 9,865.40 crore.

Patni Computer Systems net declined 2.7% in the quarter ending in December to $39.4 million or Rs 177.3 crore compared to $40.5 million a year ago quarter.

Net revenues in the period rose 8% to $183 million.